Arecor Therapeutics PLC (AIM:AREC) has inked a co-development and exclusive licence option agreement with an unnamed leading global medical products company to develop a high-value, ready-to-dilute (RTD) oncology product from its in-house specialty hospital pipeline.
Under the terms of this deal, Arecor and its partner will jointly carry out further development and regulatory work.
The company stands to receive potential developmental milestones. Moreover, the agreement grants the partner an exclusive, worldwide licence option to develop further and commercialise the product, and would result in milestone and royalty payments for Arecor.
Arecor will use its technology platform, Arestat, to develop an RTD form of a lyophilised powder product, which is based on an existing 'blockbuster' oncology therapy.
It is being designed to offer significant advantages over the current product, including simplifying the treatment process, enhancing safety in medical practices, and reducing patient chair time.
"This product, from our in-house speciality hospital pipeline, is the second revenue-generating transaction of this type and demonstrates not only our expertise in selecting and delivering RTA and RTD-improved medicines but also our commercial capabilities to convert these into value-driving collaborations at key inflexion points," said Arecor chief executive Sarah Howell.
"We are confident that we have selected the right partner who has outstanding commercial capabilities and a shared vision to bring this important cancer medicine to patients.
"With the current therapy continuing to grow in both volume and value terms, this enhanced formulation has the potential to further benefit pharmacists and physicians through the simplified reconstitution process and, most importantly, improve care for patients."